Kuwait Petroleum Corporation has updated its employment policies through a recently issued circular that reclassifies certain ex-Kuwaitis for hiring purposes within the oil sector. The directive applies to individuals whose Kuwaiti nationality was withdrawn, including sons of Kuwaiti women in some cases, requiring their appointment on non-Kuwaiti work contracts with lump-sum salaries. According to the corporation’s circular, compensation will consist solely of the employee’s last basic salary, excluding all allowances, benefits and additional perks that typically accompany Kuwaiti national contracts. This adjustment standardizes treatment for this group while maintaining operational continuity across KPC and its subsidiaries.
The circular specifies that affected employees will transition to the new contract framework immediately upon implementation, with the basic salary serving as the fixed total remuneration. KPC emphasized in the directive that this approach aligns with existing labor regulations for non-nationals in the sector, ensuring compliance without disrupting current roles. Officials noted that the measure addresses prior inconsistencies in how such cases were handled following nationality changes, providing a clear administrative path forward.
Kuwait Petroleum Corporation has pursued multiple adjustments to its human resources framework in recent months, including modifications to promotion timelines and benefit structures for new hires approved by its board in July 2026. Those earlier changes, which included capping annual salary increases at 5 percent of the basic payroll budget for newcomers and replacing vehicle entitlements with cash allowances for team leaders, reflected a broader effort to control costs while prioritizing national workforce development. The latest circular on ex-Kuwaitis builds on that pattern by clarifying terms for a specific category of workers.
Public Authority for Social Security data referenced in related KPC announcements places the total national workforce in the oil sector at more than 20,000 Kuwaitis as of early 2025, with the Kuwaitization rate reaching 91 percent according to the corporation’s 2024-2025 annual report. That report highlighted recruitment of 1,321 Kuwaitis during the fiscal year alongside only 128 non-Kuwaitis, underscoring the priority given to citizens in hiring campaigns. The corporation’s managing director for human resources and corporate services, Hesham Al-Refae, has overseen these policies as part of efforts to balance expertise needs with national employment targets.
Implementation of the new terms will require coordination between KPC’s human resources departments and subsidiary companies to update individual contracts without affecting ongoing operations or project timelines. The circular instructs relevant units to apply the basic-salary-only formula uniformly, avoiding any supplementary payments that might have been extended under previous national-status arrangements. This step forms part of KPC’s ongoing review of administrative procedures across its integrated oil and gas activities.
In parallel with these employment adjustments, Kuwait Petroleum Corporation continues to expand training programs for Kuwaiti nationals, with more than 80 percent of staff participating in recent engagement surveys cited in its annual reporting. The corporation’s recruitment cycles remain restricted to Kuwaiti citizens for most entry-level and experienced professional positions, as outlined on its official career portal. Such policies support long-term sustainability goals while addressing specific cases through targeted circulars like the one issued this week.
